What Is an Asset-Based Loan?
An asset-based loan is a loan that uses assets, rather than being based on a borrower’s income level or credit score, or DTI ratio. Whether you are a commercial real estate investor, a retiree, or a small business owner, asset-based loans can prove a convenient solution if you don’t want to apply—or can’t get approved—for a traditional loan.
Qualified assets to secure a loan can include certificates of deposit (CDs), saving accounts, mutual funds, bonds, stocks, and crypto. The assets you offer for a loan must be easily converted into cash within a short time. These assets are popularly known as liquid assets.
How Does Asset-Based Lending in Idaho Work?
With asset-based lending in Idaho, you will be using your assets to qualify for a home mortgage. Your borrowing base, or the amount you are granted for your loan, will be determined based your assets’ worth. For your asset-based mortgage, you can use 70% of what you have in retirement, 80% of what you have in investment accounts, and 100% of liquid assets, the value of your bank savings.
To calculate your borrowing base, you must first estimate your maximum monthly loan payment. You need to determine the entire worth of your available assets. Then, the total value of your assets will be divided by a certain number of years determined by the lender, depending on the asset-based loan program.
Once you take out an asset-based loan in Idaho, the lender will not have access to your assets. However, if you fail to pay back your asset-based loan, the lender can foreclose on the property. This arrangement allows the borrower to extract cash from their assets while also protecting the lender in case the loan is defaulted on.
Benefits of Asset-Based Loans in Idaho
Asset-based loans in Idaho come with a variety of unique benefits that you can use to your advantage. Some of the primary benefits of asset-based loans include the following:
- Qualify for a loan using only your assets, credit, and down payment. With an asset-based loan in Idaho, you can put your existing assets to work for you. Rather than qualifying for a loan based on your income streams, an asset-based loan allows you to qualify solely through the assets you own.
- Access up to $3 million in financing. You can potentially qualify for as much as $3 million in financing when you apply for an asset-based loan through Griffin Funding. The higher the value of the assets you put down, the higher the loan amount you can qualify for.
- Get a loan regardless of your income level. Asset-based loans in Idaho are open to people of all income levels. As we mentioned above, asset-based loans are based on assets you already own, not the income you’re currently generating.
- Take out a mortgage for a home that isn’t your primary residence. If you want to purchase a vacation home or investment property, you can do this with an asset-based loan in Idaho.
- Capitalize on flexible qualification requirements. As long as you have a minimum credit score of 620, you can potentially qualify for an asset-based loan in Idaho.
How to Get an Asset-Based Loan in Idaho
To secure an asset-based loan in Idaho through Griffin Funding, you’ll follow these basic steps:
- Contact a Griffin Funding mortgage strategist.
- Fill out an online loan application.
- Identify the assets you will use to qualify.
- Provide necessary documentation.
- After your application and documentation is reviewed and approved by the lender, sign the loan agreement in front of a notary.
When you apply for an asset-based loan in Idaho, you don’t have to jump through the same hoops you might face during the traditional mortgage approval process. Simply follow these steps, and you can get the financing you need.
Areas We Serve
At Griffin Funding, we can provide asset-based lending services in virtually any part of Idaho. Some of the areas we serve include:
- Idaho Falls
- Sun Valley
- Coeur d’Alene
- Post Falls
- Twin Falls
Other Non-QM Loans From Griffin Funding
To meet the needs of different borrowers, we offer a wide range of Non-QM loan programs. Below, we go into more detail about some of the Non-QM loans we offer. Consider these options as you seek out financing or contact us, and we can help you review the options that best fit your circumstances.
Bank Statement Loans
Bank statement loans allow you to qualify for financing using only your bank statements. The 12-month bank statement loan program is our most popular option. For self-employed borrowers, business owners, realtors, consultants, and entrepreneurs, obtaining bank statement loans in Idaho is an alternative way to secure financing.
Investors who choose interest-only loans can reduce the payments they make on their mortgage for a limited period of time. Payments made during a pre-defined time period are only applied to the accrued interest, not the principal. Once this time period expires, payments are recalculated to include the principal amount.
Debt Service Coverage Ratio (DSCR) Loans
Apply for DSCR loans in Idaho to access financing that’s based on the property’s cash flow rather than your income. Getting a debt service coverage ratio loan can make it easier to expand your investment portfolio.
Many home buyers are discouraged by the strict requirements and hefty down payments demanded by many credit institutions. But with Griffin Funding, you can obtain jumbo loans and near miss jumbo loans to get hefty loans at an affordable rate.
In addition to these Non-QM loan options, Griffin Funding is also proud to offer VA home loans in Idaho. With VA home loans in Idaho, you can get a mortgage with no down payment and access preferential rates and loan terms.
Apply for an Asset-Based Loan in Idaho
Idaho asset-based loans provide borrowers with a range of benefits, among them a great deal of flexibility. And, at Griffin Funding, we’re one of the best mortgage lenders in Idaho, so we can help you secure an asset-based loan, a traditional mortgage, or a Non-QM loan while offering highly competitive rates. Our trained and highly professional staff will work closely with you to evaluate the financing options at your disposal. Request a free quote today or, if you’re ready to get financing, submit an online application.